Assessment Items Complete the tax assets as per the schedule. Include future taxable and deductible amounts on the schedule. Indicate the type of each adjustment (Permanent or Temporary) Using proper General B. Make the journal entry recording income tax expense, income tax payable, and deferred income taxes for 2020. Journal format and rules. Instructions The income statement of Hyland Company showed "Income before income taxes"(pre-tax financial income) of $900,000. The enacted tax rates are 30% for all years; and no other differences between book and taxable incomes existed, except for those mentioned below. In 2020, the initial year of its existence, Hyland Company's accountant, in preparing both the income statement and the tax return, developed the following list of items causing differences between accounting and taxable income: 1. The company sells its merchandise on an installment contract basis. In 2020, Hyland elected, for tax purposes, to report the gross profit from these sales in the years the receivables The future collection of the installment contracts receivables is expected to result in taxable amounts of $120,000 in each of the next two years (2021 and 2022). 2. The company has also chosen to depreciate all of its depreciable assets on an accelerated basis for tax purposes but on a straight-line basis for accounting purposes. These procedur resulted in $42,000 excess depreciation for tax purposes over accounting depreciation in 2020 . The temporary difference due to excess tax depreciation will reverse equally over the thear period from 2021-2023. Hyland leased some of its property to Simms Company on July 1, 2020. The lease was to expire on July 1,2023 and the monthly rentals were to be $30,000. Simms, however, paid the first year's rent in advance ( 12 months) and Hyland reported this entire amount on its tax return in 2020 . These procedures resulted in an $180,000 difference between book and taxable incomes. 4 Hyland owns $150,000 of bonds issued by the State of Ohio upon which 6% interest is paid annually. In 2020 , Hyland showed $9,000 of income from the bonds on its income statement but did not show any of these amounts on its tax return. (Note: these bonds are classified as long-term investments on Hyland's balance sheet.) 53 In 2020, Hyland insured the lives of its chief executives. The premiums paid amounted to $12,000 and this amount was shown as an expense on the income statement. However, this amount was not deducted on the tax return. The company is the beneficiary